How much value do you place on yourself, family or friends?
Choices we make relating to the quality of a product or service can have impacting effects, positive or negative on our lives and relationships with others. The decision to spend too little in order to achieve a short-term gain can often result in additional unexpected expenditure/costs.
I have spoken to many people who have experienced regret for underinvesting in a product or service.
As an example, I will use the experience of purchasing a pair of shoes. Our reasons to buy the shoes can vary from design appeal to functional needs. Some people have an obsession to collect shoes. In most circumstances, the impulses for deciding are many, and are normally determined by the individual’s evaluation process such as design, specific need for use being either dress shoes, casual shoes or sports shoes and of course comfort. The purchaser’s personality type also has an influence. Another consideration may be the orthopaedic condition of the wearer’s feet. In addition to all these deciding factors comes price. How much am I going to spend?
Now this is where a range of options are presented. Spend as little as I can or spend too much?
We can often be influenced by the cheaper option. Let’s face it, nobody wants to spend more than necessary. The problem here is that spending too little can often prove to be a false economy. If the shoes are manufactured from inferior materials that may not last the distance “literally”. The money we thought we have saved is then wasted through the need to replace these shoes much earlier than expected, potentially resulting in spending more than twice as much as intended. In reality there was no saving money here.
I am sure we can all recall a purchase where we didn’t get value for money. In the case of a product, the cost of replacement means we have lost the initial purchase value yet we may also need to add the cost of the replacement product plus the costs of removal and installation if required. These dollar values can really add up. In addition to these costs are the costs of our time, possibly trades we contract to carry out the work, as well as inconvenience.
If you are a manufacturer or supplier, this is where the true (unexpected) costs of inferior products can be very damaging to your business and we certainly don’t need that. In addition to any money spent on purchasing inferior products, the costs of replacing these should also include possible loss of production (productivity) and potentially the most damaging can be loss of reputation.
In business we work hard to build brand value. Your hard-earned reputation is one of the most positive contributors to business growth. We need to protect this investment of reputation by ensuring our customers are satisfied. In other words, we need to meet their expectations of quality and reliability. Be sure not to undermine your customer satisfaction when using products or services that don’t meet your own expectations of quality and reliability.
If topics presented in this article raise questions on how best to deal with customer’s requests for cheaper solutions of product and service, Redman Training and Development conducts group workshops either face to face where conditions permit or by video conferencing such as “Zoom”. We are happy to develop specific training for your business or individual needs.